SHANGHAI, Feb 16 (SMM) - China alumina output in January (31 calendar days) was 6.5 million mt, of which metallurgical-grade alumina output stood at 6.28 million mt, according to SMM statistics. The average daily output of metallurgical-grade alumina was 203,000 mt, a decrease of 1.3% MoM and an increase of 10.4% YoY. The air pollution prevention and control policy in January affected the production stability of roasting machines in Shanxi, Shandong and Henan, resulting in a decrease in the output in these provinces compared with the previous month. Nonetheless, the total alumina output in China declined only limitedly MoM, mainly due to the stable production in south-west China. Meanwhile, the strong rally of alumina prices since mid-January prompted some manufacturers to produce at or exceed full capacity. The net imports of alumina is estimated at around 200,000 mt in January, and the alumina surplus wull be 333,000 mt. The production of 1 mt of aluminium consumes 1.925 mt of alumina.
China's metallurgical grade alumina operating capacity reached 73.95 million mt/year as of end-January, with the installed capacity at 93.8 million mt/year. In February, the alumina roasting capacity in Shanxi, Shandong and Henan was restricted by the intensifying control measures for heavy air pollution. In addition, the outbreak of COVID in Guangxi has disrupted the production of alumina and the transportation of raw materials. The output of the metallurgical grade alumina is expected to be 5.34 million mt in February (28 calendar days), and the monthly alumina deficit is expected to be around 120,000 mt.
